TaxTMI 
TaxTMI 
2026 (4) TMI 1662
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....are used for travelling outside the SEZ area, as per Notification No. 4/2004-ST dated 31.03.2004 and that the appellant is not eligible for the benefit of notification, proceedings were initiated and show cause notice was issued to the appellant. On Adjudication the adjudicating authority confirmed the demand along with the interest and imposed penalty and the same was upheld on appeal by Commissioner (Appeals). Aggrieved by the impugned order this appeal is filed before the Tribunal. 3. The learned counsel for the appellant during the hearing submits that during the adjudication proceedings the Appellant had submitted that the services provided to SEZ units are exempt from the levy of service tax. However, both the Learned Adjudicating Authority and the Commissioner (Appeals) overlooked the statutory mandate under Sections 26(1) and 51(1) of the Special Economic Zones Act, 2005 (SEZ Act,2005), which confer overriding effect and provide for exemption from service tax on services rendered to SEZ unit. The Relevant text of section 26 of SEZ Act, 2005 is reproduced as under: - 26. Exemptions, drawbacks and concessions to every Developer and entrepreneur. 26.(1) Su....
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....5 speaks of three different types of exemptions. They are, (1) exemption from payment of taxes under the enactments specified in the First Schedule, in respect of goods and services exported out of, or imported into or procured from a DTA by a unit in a Special Economic Zone or a Developer under Section 7, (2) exemption from payment of duties under the Customs Act, 1962, Customs Tariff Act, 1975, Central Excise Act, 1994, Central Excise Tariff Act, 1985, Finance Act, 1994, Finance (No. 2) Act, 2004 and Central Sales Tax Act, 1956, covered by Section 26 (1); and (3) exemption from payment of state taxes, levies and duties covered by Section 50, provided there is a state enactment to the said effect. 33.The word "prescribe" is used in the present tense in Section 26(2) and in the past tense in Section 7. Both will have the same meaning as assigned to the word under Section 2(w). The moment a set of rules is issued either in respect of matters covered by Section 7 or in respect of matters covered by Section 26(1), there is no scope for invoking any other law for imposing any other condition. 34.The benefit of exemptions granted under the no....
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.... unit in the SEZ is deemed as export as per the provisions of Section 2((m)(ii) of the SEZ Act, 2005 and as per Rule 31 of the SEZ Rules, 2006, the assessee is entitled for exemption from payment of service tax on the services which are used or provided to a unit in SEZ. Further, as per Section 51 of the said SEZ Act, the said provisions prevail over the provisions contained in any other law for the time being in force. It is the avowed policy objective of the Government of India that exports should not bear the burden of taxes." d) M/s. ONGC Mangalore Petrochemicals Limited Vs. Commissioner of Central Excise & Central Tax, Mangalore Commissionerate - 2019 (2) TMI 588 - CESTAT BANGALORE -Final Order No. 20100/2019-in Appeal No. ST/21715/2018-SM e) Mast Global Business Services India Pvt Ltd Vs. Commissioner of Central Tax, Bangalore - "6. After considering the submissions of both the parties and perusal of the material on record, I find that the appellant being SEZ is entitled to refund of Service Tax paid on input services used for authorized operations. Further, I find that as per Notification No. 12/2013-ST dated 01.07.2013, the only requirement is tha....
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.... of any other law. Therefore keeping in view the intention of the Government in enacting the SEZ Act and giving special fiscal concessions to SEZs, I am of the considered opinion that this is only a procedural and is not a mandatory condition as held by the Commissioner (Appeals). Further the decisions relied upon by the appellant clearly hold that the SEZ Act has a overriding effect over other laws. Therefore this ground on the basis of which refund claims have been rejected is not tenable in law." (g) SRF Ltd. Vs. Commr. of Cus., C. Ex. & S.T., LTU, New Delhi - 2022 (64) G.S.T.L. 489 (Tri. Del.)-Final Order Nos. A/50290-50294/2022-CU[DB], dated 28-3-2022 in Appeal Nos. ST/52449, 52466, 52488, 52490 & 51804/2021 "37. Thus, Section 26(1) of the SEZ Act is inconsistent with the three charging sections viz., Section 3 of the Central Excise Act, 1944, Section 12 of the Customs Act, 1962 and Sections 66, 66A and 66B of Chapter V of the Finance Act, 1994. In addition to the general principle of a specific law (pertaining to SEZ) prevailing over the general law (levying customs, central excise or service tax) and the later enactment (such SEZ Act, 2005) prevailing over ....